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Economics > business topic 2 (chap 8.7 -9) > Flashcards

business topic 2 (chap 8.7 -9) Flashcards

1
Q

business ethics

A

application of moral standards to businessbehaviour

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2
Q

signs businesses engage in ethical business practices & act honestly and what for

A

-not engage in misleading/deceptive product descriptions
-safe working enviro for employees
incorporate CORPORATE SOCIAL RESPONSIBILITY

avoid negative publicity & deterioration of reputation
-consumer boycotts
-highexpectations from society and customers
-managers need high personal and ethical standards so employees perceive importance of ethical considerations

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3
Q

CORPORATE social responsibility

A

open & accountable bus actions based on respect for society and environment (social welfare) when making business decisions
-more than simply complying with laws and regulations
-rewarded with improved bus performance

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4
Q

triple bottom line (enviro, social, eco)

A
  1. PROFIT bottom line
    -measure traditional ‘profit & loss’ financial bottom line
  2. PEOPLE bottom line
    -measure how socially responsible business been
  3. PLANET bottom line
    -measure how environmentally sustainable bus been
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5
Q

what does managing a business sustainably mean

A

managing in way maximises bottom line but optimises enviro, eco, social benefits for society
-corporate social responsibility

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6
Q

social enterprises

A

commercially viable businesses established to achieve social objectives > making profit or shareholders/owners
-generate profit from trading activity to tackle social problems and improve enviro

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7
Q

ethical issues businesses regularly have to address in daily operations HRCFT

A
  1. fairness and honesty
  2. respect for others
  3. conflict of interest
    4.financial management
  4. truthful communication
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8
Q

ETHICAL issue of fairness and honesty

A

must obey all laws & regulations, expected to tell truth & avoid misleading/deceptive info
-employees need fair honest treatment
-customers & suppliers in business dealings, honour their commitment

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9
Q

ethical issue of respecting others

A

-employee may have unethical practice (esp if imp to successful operation of business)
-employee by other employees, discrimination, harassment
-confidential info may be leaked

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10
Q

ethical issue of conflict of interest

A

person takes advantage of situation/info for own gain than employer’s interest
-when gifts/payments offered (bribe)
-corruption undermines integrity of bus if unchecked, infiltrates workplace culture
-entrenched within business, changing attitudes & practices of individuals extremely diff
-if corrupt practices exposed, reputation damaged

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11
Q

ethical issue
financial management

A

ethical & legal responsibilities
-must reflect objecties of bus and interests of shareholders, imp in valuing of assets
-overestimating expenditure and understating revenue allows unexpected events when preparing budgets
-all financial records should be regularly audited

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12
Q

audit

A

independent check of accuracy of financial records & accounting procedures

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13
Q

ethical issue
truthful communication

A

false/misleading advertising illegal ‘sale’‘low fat’
eg. ‘special’ consumers believe sale at cheaper than normal price but owner may mean distinct characteristic, for bargain price, use ‘on special’
-deliberate misleading/ambiguous language vague and allow marketer deny intention to deceive

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14
Q

ethically responsible appraoches to businesses

A
  1. ensure fair price paid for all materials
  2. minimise waste & pollution
  3. conserve energy use
  4. protect health & safety of customers
  5. ensure bus free of corruption
  6. ensure supplies have socially responsible policies
  7. treat employees respectfully, fairly, honestly
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15
Q

corporate code of conduct

A

set of ethical standards for managers and employees to abide by
-encourage ethical behaviour
-provide internal stakeholders with ethical guidelines for workplace behaviour & practices
-formal proceedings for reporting unethical behaviour in workplace

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16
Q

change

A

alteration in internal/external environments
-consumer tastes
-production methods
-markets/products sold
-how employees perform tasks

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17
Q

organisational change

A

adopt new behaviour resulting in diff in operation of org over time
-moderate corporate culture
-new organisational structures
-recruit employees with new skills
-develop diff work practices

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18
Q

MANAGERS and change

A

respondingto unplanned changes requires responsive decision making from management to reduce disruption of business
-key driving forces for change
-push for changes –> better outcomes and efficient achievement of objectives

could restrain change
-hasty decisions, poorly timed, indecisve
-lack experience and skills to oversee transformation
-unable to deal with resistance from stakeholders in business
eventually cause employees lose confidence in decision making abilities of management

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19
Q

employees and change

A

INNOVAtive enviro where ideas shared and acted on likely driving force for change
-recommend changes to policies, PP, products
-operations, marketing change from employee creativity to develop innovative products

restraining force
-affect lvl & type of stating, fear job losses
-merge/acquisition could breakdown existing corporate culture –> mistrust, suspicion employees
-adapt to new procedures threaten established work routines, esp training not provided

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20
Q

externl influences causing change CLTS

A

competition
legislation
tech
social

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21
Q

external change
competition

A

bus need to monitor activies of comp & determine effect on marketplace, enabling modifications to activities and plan new ones

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22
Q

how can compeititors drive change 4

A

-open new business competintg with existing one
-undergo change to stay current & relevant to customers

pricing policies by competitor
-bus adopt similar strat

adopt new tech (production & products)
-competitor change products/processes

advertising campaigns, sales, develop online presence

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23
Q

external change
legislation

A

new laws pass, must comply with new legislative requirements, change operations
-state gvts (smoking in public)
-local councils(parking restrictions) or federal lol

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24
Q

external change
tech

A

to be locally, nationally,globally competitive
-slow to exploit tech –> likely fail bc competitors capture greater market share & develop sustainable competitive advantage
-allows to operate processes more efficiently –> cut costs, improveproductivity
-size don’t matter to ake advantage of it (EFTPOS, self-service checkouts)

25
Q

external change
social

A

adapt to changes in society’s attitudes and values
-what’s right/wrong evolve and values change, affecting operations
-increased access to rapid communications made pop more aware of business practices
-pressure forces bus to implement procedures to preserve natural enviro and ensure ethical supply chain
-sell safe products, respect staff,

26
Q

managing change

A

-can be promising opportunity
-fundamental aspect of bus’ strategic planning
-ability to manage, adapt change determines bus’ competitive advantage and survival
-successful managers anticipate & adjust to changing circumstances (PROACTIVE not reactive)
-make productive as possible and use to renew/strengthen bus but must occur pace can be integrated by bus
-long term survival depends on ability of managers to scan enviro, predict future trends and exploit change

27
Q

proactive approach to change

A

situations where change planned and occurs before bus affected by pressure in enviro
-mor effective, allows bus gain competitive advantage (not affected negatively)
-allows bus prepared when occurs

28
Q

reactive appraoch to change

A

unplanned, occurs after bus affected by pressures from enviro
-less effective (already affected)
-lose productivity/sales from failure to recognise imminent change
-failure to respond immediately lose time as it attempts to recover

29
Q

how should change be appraoched

A

thoroughly evaluated to assess overall impact
-poorly managed –> employee resistance, lost productivity –> decrease profits, unmet objectives
-esp hard when pact and nature beyond control of manager
-communication, employee involvement in change process, training, support, negotiation
-require leadership skills and responsive management structures

30
Q

why do business fail to manage change

A

in upheaval of restructuring process, employees (crucial!) often NEGLECTED
-communication channels break down in highly emotional climate

31
Q

3 steps to managechange 443

A

UNFREEZE
1. determine what needs to change
2. ensure strong support from upper management
3. create need for change
4. manage & understand doubts & concerns

CHANGE
1. communicate often (guidance,feedback
2. dispel rumours
3. empower action
4. involve ppl in process

REFREEZE
1. anchor changes into culture (rewrite policies, maintain support for staff)
2. develop ways to sustain change
3. provide support & training

32
Q

4 management of change most efective if bus can

A

-identify needfor change
-set achievable goals
-develop strategies to overcome resistance to change
-use management consultants

33
Q

how can managers identify needs for change

A

scan environment & attempt to understand factors that will impact business to identify current trends and predict future changes
-holistic view of world
-correctly anticipating actors assists identifying
-strengthens bus to take full adv of opp for long term survival in increasingly competitive world

34
Q

bus’ success/failure to accurately identify what needs change depends on ability to … (info)
hence, need to (data)

A

collect
organise
process
retreive info quickly

gather
store
combine
analyse masses of data efficiently, quickly

35
Q

examples of info collecting for change

A

OPERATIONS manager of MANUFACTURING bus collects data abt PRODUCTION COSTS and production SCHEDULES

MARKETING manager gather data measuring SALES, PRODUCT DEVELOPMENT and customer SATISFACTION

FINANCE manager collect data abt financial TRANSACTIONS and measure CASH FLOWS

HUMAN RESOURCE manager record staff ABSENCES, TRAINING requirements and overtime payments

36
Q

once data process and organised for manager this info becomes

A

raw material for decision making
-otherwise cannot accurately identity what needs change

37
Q

data and info

A

unprocessed figures eg. sales, customer complaines

processed data selected, prgamosed for manager

38
Q

where od managers get info they need to change

A

business information system BIS/management info system MIS
-gathers data, organises & summarises, converts to practical info for managers who use data to make decisions

39
Q

vision statement

A

statement abt what bus aspires to become in future, key goals
-reassessment required if management detects changes in external bus enviro with major impact on bus activities
-realistic goals otherwise cynicism from employees, or greater chance of realisation

40
Q

how do manager treatment to employees affect their attitudes to change

A

determines acceptance/resistance to change
-leader with high expectation of abilities to initiate and implement change process rewarded with ppl willing to embrace it

41
Q

6 common reasons why change resisted FPRRRI

A

FINANCIAL COSTS
PURCHASING NEW EQUIP
REDUNDANCY PAYMENTS
RETRAINING
REORGANISING PLANT LAYOUT
INTERTIA

42
Q

RESISTANCE due to financial costs

A

must weight up costs & benefits of change
-financial costs of implementing changes

43
Q

resistance from
purchasing new equipment

A

cost of investing new tech/equip expensive
-but sig advantages - before, managers need to weight cost of purchase against cost of leasing new equip

44
Q

resistance due to redundancy payments

A

lose jobs –> entitled to financial compensation (redundancy payment)
-money given to employees when forced out of work cause skills no longer relevant
-very high esp if employees MADE redundant

45
Q

resistance due to retraining

A

employees need retraining (on/off job)

46
Q

resistance to change due to reoganising plant layout

A

new equip installed, layout of plant requires reorganisation to improve productivity
-high costs

47
Q

resistance to change due to inertia

A

inertia: unenthusiastic response to proposed change
-requires movingaway from comfort zones, desire predictable status qo
-lack of control, fear of unknown, uncertainty of future
-worse if poor leadership and management during change

48
Q

driving forces

A

forces initiate, encourage and support change
-^market share
-^revenue
-obtaining customers from new market segment
-economies of scale

for organisational change: changes in internal & external enviros

49
Q

restraining forces

A

work against change, creating resistance
-cost risks
-damage corporate image
-upset business partners/stakeholders

50
Q

status quo/current conditions result from

A

driving and restraining forces pulling in opp directions
-managers must analyse situation to identify and balance driving and restraining forces

51
Q

steps of considering forces exerting pressure to change

A
  1. consider aspects of bus that could encourage change
  2. who & what restraining project (stakeholders)
  3. managers place strategies to reduce restraining forces so drivers can continue strengthen change and bring more drivers to forefront of change process
    -effective change: weight of driving forces > restraining forces
    -remain equilibrium/weight of restraining > driving, change unlikely occur

driving forces <—–equilibrium —->restraining forces

52
Q

strategies to reduce resistance to change CACL

A

create CULTURE for change
-supportive environment to reduce resistance
-constant feedback

change AGENTS
-identify ind/group influential in bus to act as catalysts to help manage process
-initiate, stimulate, facilitate change effort within orgs
-internal to org (manager, employee)/external *consultants)

effective COMMUNICATION
-managers need to communicate with stakeholders regarding need for change and progress
-open communication channels to transfer info otherwise resistance

positive LEADERSHIP(flashcard for this)

53
Q

change agent

A

person/group act as catalysts assuming responsibility for managing change process

54
Q

positive leadership to reduce resistance

A

manager treatment of employees determines resistance to change
-acts as leader with high expectations of employees’ abilities to implement change process rewarded with ppl willing to embrace change
-productively dealt cause employees believe they have trust and support of manager
-more prepared to accept risks if manager concerned with welfare

55
Q

management consultant

A

someone with specialised knowledge and skills with area of business
-specialise in range of areas (risk management, brand protection, sustainability)
-best to hire members of Institute of Management Consultants as they have recognised standards of character, experience and education

56
Q

what do management consultants provide

A

-range of bus experiences
-specialised knowledge and skills
-external, objective perspective
-access to latest research
-awareness of industry BEST PRACTICES (highest standard in industry)
-CHANGE MANAGEMENT advice

57
Q

management consultants aim

A

help businesses improve performance by investigating existing business problems and developing plans for improvement

58
Q

changemanagement

A

methodical appraoch to dealing with change from perspective of business and individual

59
Q

how does change management provide strategies to smoothly manage introduction of business changes

A

-undertaking change readiness reviews
-creating supportive business culture
-involving all stakeholders in change process
-gaining & recognising early achievements

Economics (12 decks)

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